Aug. 13. By Dave Yochum. The local store that was perfect for gifts of all kinds, not to mention discount fashions, bedding and even plus-size clothing, will close as part of a corporate-wide bankruptcy filing. Stein Mart has filed for Chapter 11 bankruptcy and plans to wind down operations in the fourth quarter.

All stores will stay open during the Chapter 11 process, “until such time that merchandise is completely liquidated.”

Contacted by Business Today, Stein Mart officials said, “we expect this process to be completed during the fourth quarter with all stores closing on a staggered basis.”

The off-price retailer is one of the anchors at The Shops at Fresh Market at Torrence Chapel and West Catawba. It’s been a mainstay of Lake Norman shopping for two decades. In an earnings call, shopping center owner SITE Centers said tenants were having a “litany of problems.” Around 71 percent of rents due in July came in. SITE is suspending third-quarter dividends.

Like many retailers, Stein Mart has struggled with a fast-changing retail landscape, as well as the coronavirus pandemic.

Major loss

The company had a 57 percent drop in sales in its most recent quarter ended May 2. Across 281 stores, the company lost $65 million in a single quarter.

Stein Mart officials said the best way to maximize its value was to go straight to going-out-of-business sales.

“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business,” said CEO Hunt Hawkins.

The company lacks sufficient liquidity to continue operating in the ordinary course of business.

“Please know that this was an extremely difficult decision, and is deeply disappointing for all of us at Stein Mart. We have loved serving our communities over the years and are so grateful to our loyal customers who chose to shop our stores,” Hawkins said.